Hi jcl, MatPed,

I thought more about this over the weekend, and my thoughts have shifted as follows:

a) While from the time point of view different capital fundings are different, in fact Balance is being used as a proxy for time & number of trades, and so time is absent from the formulas. If Balance is then pro-rata'd over the fundings, and Withdrawals as well, then the square root formula gives the same f factor for all capital fundings, regardless of when they were done!

b) One could drop down from the account level to the individual trades, since at the time of an additional capital funding it has obviously no trades and until a new one is opened all Profits apply to the old funding's trades. This would, however, be a lot of extra work for probably not really much benefit. Especially since over some likely relatively short time all the old trades would be closed, at which point everything is pro-rata again.

What should really be done when multiple fundings are involved? How should time be incorporated?

Put another way in terms of the manual's example:

Capital of $1000 has grown to $1300 account balance. The investment grew by factor 1.3; the square root of 1.3 is 1.14. Therefore $1140 must stay and $160 can be withdrawn.

But what if the $1000 came from $500 invested 9 years ago and $500 invested last year? How does this change things? Should 90% of the $300 Profit be allocated to the 1st $500? Or...?

Thanks.